You have seen the eBay sellers who state that returns are subject to a 15% or 20% "re-stocking fee."  False!  That is a scam.  

Your credit card provider and/or PayPal or ProPay will NOT permit your eBay seller (or any other seller) to force you to pay a re-stocking fee.

Always pay for your eBay purchases, and indeed ALL your purchases anywhere, with a credit card, either directly or through PayPal or ProPay.  When you pay by credit card you have recourse when you need to return an item for any reason whatsoever. 

Further, many credit card companies double or triple the basic warranty on your item, a feature that can be very worthwhile when you buy electronic items that may break down or fail after the initial warranty period.  There are many advantages of buying with a credit card, the greatest advantage being buyer protection, not merely convenience.

You should always use a credit card for online purchases.  A credit card affords you more protection than a debit card as debit cards are subject to slightly different Federal banking regulations, specifically Regulation E or simply "Reg E."  However, PayPal's buyer protections are in place even if you used a debit card.

If you return an item, you are responsible for return postage and for proof that the seller received the returned item.  The seller CANNOT be compelled to pay your postage both ways.  If a seller has made a terrible mistake, he might be so embarrassed that he will offer to reimburse return shipping, but he is NOT required to do so.

Never return an item to a seller without U.S. Postal Service Delivery Confirmation or a tracking number from FedEx, UPS or other carrier.

eBay cautions buyers to buy only from sellers who offer some form of buyer protection, such as payment by a credit card or by a credit card through PayPal.  

Therefore, starting in late October 2008, eBay will require all sellers to accept online payments either (1) via credit card merchant account processed directly through eBay checkout or (2) PayPal or (3) ProPay. 

Those will be the ONLY payment methods allowed on eBay except for sellers who allow in-person pick-up.  For those purchases, buyers can pay by check or money order.  Sellers are prohibited from asking for cash payments.

Sellers who do not accept online payments will not be able to sell on eBay.  All of those sellers who now insist on money orders will either accept online payments or leave eBay.

It will not be necessary for buyers to pay with a credit card, as they will still be able to pay online from their PayPal accounts or ProPay accounts that are linked to bank accounts. 

We urge you to NEVER buy anything whatsoever online except by using a credit card.

Your seller's feedback rating is no guarantee of problem-free transaction because buyers have only been allowed to leave "honest" feedback (feedback for which a seller cannot retaliate) since May, 2008.  Therefore you should consider feedback left after that date as more credible than earlier feedback that may have been given in fear of retaliatory negatives.

All sales where PayPal is offered are covered by PayPal's Buyer Protection program, in addition to the usual protection you have when you buy with a credit card.

If you pay for an item by check, wire transfer, money order or bank check, you may have limited recourse against a seller aside from a complaint to the FTC (tfc.gov), your state attorney general, a civil lawsuit or a fraud complaint to local law enforcement authorities.  Unless a substantial sum is involved, it will not be economically feasible to sue an eBay seller.  Consult with your attorney if you think you need to sue a seller, regardless of the sum.  Report all eBay seller fraud to eBay, the TFC and to law enforcement authorities.  eBay cautions you when an auction item is not covered by an eBay buyer protection.

Under rare circumstances, an account-to-account wire transfer can be reversed by your bank, but generally once you have made the transfer, you can never get the money back except through legal action.

Neither your credit card issuer nor PayPal will permit your seller to charge you a "re-stocking fee."  If you simply dispute the charge, you will receive a 100% refund. 

Never voluntarily agree to any re-stocking fees.  If your seller insists upon deducting a fee, file disputes with BOTH your credit card company and PayPal.

Bogus "re-stocking" fees are charged by sellers who engage in poor or deceptive business practices, or who sell faulty or questionable merchandise which they expect to be returned.  You should avoid any seller who mentions a re-stocking fee.

If you have already paid for your purchase by a check or money order, and have a problem with your seller, you are probably out of luck.  That is the price you pay for your education. 

Another false and fraudulent condition many eBay sellers place in their listings is "All sales are final" or "As-Is, No returns."  Such statements are UNENFORCEABLE!  When you pay for an item with a credit card, NO sale is final.  You always have the option to return an item.  If your seller refuses to accept a return, simply file a dispute with your credit card company and with PayPal or ProPay.

A credit card sale is never "final" until the buyer is satisfied. 

We are lobbying eBay to make it a listing violation for any seller to state "all sales are final" or "as-is, no returns."

There is an eBay seller who has in her terms of sale the hilarious statement: "I don't have a return policy because I am selling my items due to my old age, and I don't want them back."  Tough luck lady.  Most sellers do not want their items returned, but it is a fact of business that you must accept returns and give refunds, period.

Starting November 1, 2008 all eBay sellers will be required to accept online payments.  Sellers will either accept online payments or leave eBay.

Never buy anything from any online seller anywhere who does not accept credit cards, either directly or through PayPal.  If you have any dispute with your seller you will probably be out of luck.

By the way, neither PayPal nor eBay will allow your U.S. eBay seller to charge you a surcharge for using PayPal or a credit card.  Both eBay and PayPal expressly prohibit any surcharge for using any form of payment and credit card surcharges are illegal in many states, including California, Florida, Colorado and New York.  Never pay a surcharge for the use of a credit card!

If you have paid a surcharge and your eBay seller does not immediately and voluntarily refund your surcharge on request, a negative feedback is warranted along with low DSR (Detailed Seller Ratings) stars:

As of November 1, 2008 all sellers must maintain a minimum DSR (Detailed Seller Rating) of 4.3 in all four categories in order to remain on eBay.  Sellers who do not maintain those minimums will be not be permitted to list anything for sale on eBay.  It is therefore very important that sellers give the best possible buying experience to all buyers and it is very important that all buyers give honest evaluations to sellers. 

Sellers have always had a means of getting rid of "bad" buyers (ones who don't pay and who are reported as non-payers) but now buyers have a means of getting rid of the "bad" sellers.  If you have had an especially bad experience with a seller, you should give him a negative feedback in addition to low DSR star ratings.  Low DSR's are the "new negative."  Your seller CANNOT retaliate against you.